The Supply Chain and Financial Implications

Most companies gauge their success through a series of financial metrics which are reported, internally and externally, on a monthly or quarterly basis. These metrics are the following: net income, return on investment, and earnings per share. Financial performance metrics are valuable as they demonstrate the economic outcome of business decisions.

We must understand that supply chain managers make decisions and use a firm’s resources that will undoubtedly have an impact on the financial outcomes of a company. In order to accomplish this in an efficient manner, supply chain decisions must be linked to the financial goals and allied to the company metrics.

By creating the links between the work ...

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